Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 29
|
Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 29 |
|
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 27 |
|
Go to Video Show - "How to Make Money With Breakout Stocks" |
|---|
TTD was delayed Wednesday due to a data-feed problem.
By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
|
Ticker Tape Digest's Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
|---|
The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).
TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts, but some good looking plays. Bulls be selective. Stock market backs off but still holds in up trend with momentum still bullish.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
|
TTD's Quality Rating of Stock - PRGO - ABOVE AVERAGE |
PRGO, based in Allegan, Mich., produces generic drugs. Annual revenues: $3 billion. PRGO's stock breaks out from an 11-week flat base. The move carries the stock close to a new all-time high. TTD highlighted PRGO as a potential breakout earlier in the week and suggested accumulation. So far today PRGO is trading 1.9 million shares. Its average daily volume is 1.2 million shares. 
PRGO's 10-minute chart shows the stock breaking out in the prior session, but then pulling back below its breakpoint line.
Today, The stock once again moves across the breakpoint line but this time holds. It will be important for PRGO to show follow through action on the breakout.
TTD's clip of the tape shows the recent big block trades.
A key bullish trade was a block of 45,550 shares crossing at $102 on Tuesday. That was up from the prior block traded at $100.55.
The size of the blocks was large for the stock and indicated good institutional buying interest.
Then on Wednesday, a block of 25,000 shares crossed in the late morning at $102.78. that was up from the prior big block at $100.04. The tape action on Wednesday indicated very good institutional buying. 
PRGO produces nutritional products, infant formulas, active pharmaceutical ingredients and drug and medical diagnostic products.
The company’s primary markets are in the United States, Israel, Mexico, the United Kingdom and Australia.
PRGO's 12-month performance chart shows the stock appreciating 35% versus a 5% gain for the S&P 500 index.
PRGO's long-term chart shows the stock climbing from 15 back in 2005 to a peak of 43 in 2008. It was then dragged back to 20 due to the bear market. The stock then turned higher and has made a fivefold move It is one of the strongest stocks and if it can make a new high it could bring in more buying. from the new-high crowd.
PRGO's daily chart shows the stock in a six-month base bumping up against resistance around 102. The stock push higher on Tuesday, but faded. Today, it closed above the breakpoint to come into play as a breakout. 
PRGO has put in its time consolidating. The stock's TTD momentum indicator (top of chart) is very bullish.
The accumulation-distribution line(bottom of chart) has broken out to the upside. That is a good sign that the breakout in the price of the stock is being supported by good underlying buying.
PRGO is poised to show a modest acceleration in quarterly earnings growth.
Net for the fiscal third quarter ending March 30 is projected to rise 13% and then in the fiscal fourth quarter jump 25%.
Net for the third quarter ending March 31 should climb 13% to $1.21 a share from $1.07 a year ago.
The highest estimate on the Street is at $1.29 a share. TTD sees good chances for an upside surprise. In the prior four quarters, PRGO topped the consensus estimate by 3 to 11 cents a share.
Net for the fiscal year ending June of 2012 should rise 19% to $4.78 a share from $4.01 a year ago. The stock sells with a price-earnings ratio of 21. TTD sees that as reasonable. 
Strategy Opinion: TTD is targeting PRGO for a move to 123. TTD suggests a scale-in strategy. A protective stop can be placed near 97.
TTD rates PRGO an average intermediate-term play.
Sponsorship: Very Good. The largest fund holder is 4-star rated Fidelity Contrafund with a 3.2% stake. It was a recent buyer of 70,000 shares. Also Powershares QQQQ bought 112,713 shares. The 4-star rated fund has a 1.1% stake. PRGO has 93.3 million shares outstanding. Institutions hold 66% of the stock.
Insider Activity: Bearish. Insiders were recent buyers using stock options at $19 to $32. They were sellers around 94. Currently, 16 analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Perrigo Co. - (PRGO) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - CPRT - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - CKSW - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - VRX - AVERAGE |
| TTD's Quality Rating of Stock - DIN - AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown stock expand as stock market moves broadly lower Wednesday. Bears be more venturesome.
SPRD, based in China, is a fabless semiconductor company that designs baseband processor solutions for the wireless communications market. Annual revenues: $608 million. SPRD's stock falls sharply today after the company forecasted a weaker than expected first quarter. So far today, SPRD is trading a heavy 6.1 million shares, six times its normal daily volume of 1.1 million shares. TTD sees more on the downside. 
TTD highlighted SPRD as a short at our midsession video show on the Web Wednesday.
SPRD came in with fourth quarter earnings above Street estimates. However, the company lower its revenue forecast for the first quarter. SPRD said it expects revenues for the current quarter to be $158 to $163 million.
Analysts on the Street were estimating revenues of $171 million.
The stock took the news bearishly It fell sharply in the morning and continued to work lower through the day. It hit an intraday low of $13.65.
TTD's clip of the tape shows the recent block trades. One can see the price of the blocks declining from $16,98 to $13.73. The tape showed aggressive institutional selling pressure.
SPRD combines its semiconductor expertise with its software development capabilities to deliver baseband processors with multimedia functionality and power management.
This year, analysts are forecasting only flat earnings of $2.56 a share. First quarter net is expected to rise 6%.
SPRD's chart shows the stock falling from 30 back in November to 15 in January. It then trended sideways. Today, it breaks to the downside with heavy volume - a very bearish technical pattern. The accumulation - distribution line (bottom of chart) is extremely bearish.
Strategy Opinion: TTD is targeting SPRD for a decline to 11.40 within the next few months, or sooner. A protective stop buy can be placed near 14.60.
| TTD's Quality Rating of Stock - SPRD - BELOW AVERAGE |
TTD columnist Leo Fasciocco has covered the stock market for over 20 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
For information to subscribe to the Ticker Tape Digest Services call: B. J. Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)
